Refer to the diagram above from PBEHP 12th Ed, page 193. which of the following statements is correct? Note there may be more than one correct. Asset 2 is a better investment than Asset 1 All projects plotting on the SML have an l-lli'i.'r of zero If we combine asset 1 and asset 1 in equal proportions then the average beta would be one If Asset 2 has an IRR greater than 15% then it should be aocepted [according to the SlvlL and the rm objective of maximising value- A project with a beta of 1.3 requires a return greater than 16.5% in order to add value A risk averse investor would invest only in me risk free asset as it has no rislc The slope of the SML can be calculated bv referring to an'llr two points on the SML, for example the points representing Assets 1 and 2. Slope is equal to difference In return divided bv difference in beta LITE - .125}! [1.5 - .Sl